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Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: NewsThis product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

AbstractHONG KONG (Standard & Poor's) June 11, 2009--Standard & Poor's Ratings Services said today that its ratings and outlook on Li & Fung Ltd. (A-/Stable/--) are not affected by the bankruptcy of a major customer, Germany-based Arcandor AG (not rated). In our view, the impact on Li & Fung's profitability should be limited and the potential sales gap could be filled by contributions from recent acquisitions and better-than-expected sales orders from existing customers due to restocking. We believe Li & Fung continues to have reasonably good credit controls and prudent credit management, which helps to contain the impact of a significant number of customer defaults in 2008. We had expected a further increase in bad debt expenses for Li &...